I love Mexico.

The food.

The culture.

The people.

The geographical diversity.

On the surface, it is one of the most vibrant, beautiful and culturally rich countries in the world.

My fourth child was even born there last year.

Many of you have spent time there, too. 

At face value, it feels like a place you could build a life.

…and plenty of expats do.

It’s rare that I help clients position themselves in Mexico.

Though I do have some partners in Mexico that can help with immigration work, I do not recommend Mexico to anyone for Plan-B purposes. 

In the rare cases when a client is intent on securing legal residency in Mexico, I make my stance on the matter clear and make it equally clear that I will not be held responsible if they choose to live there.

Besides those rare cases, we don’t do any form of long-term Plan-B structuring in Mexico. 

After what we saw just over a week ago, it should be obvious why.

Before we go any further, let me be clear about something:

This is not a “Mexico is dangerous” rant.

This is a breakdown and analysis of the power structures within the country and what they mean to investors and families like ours who are serious about protecting our wealth, freedom, family, and finances.

Let’s get into it,

About a week and a half ago, we were reminded of something that anyone paying attention already knows: Mexico operates with multiple layers of power, and those layers do not always move in harmony.

Events escalated quickly in regions that many people would have confidently described as “safe.”

Roads were blocked.

Vehicles were burned.

Airport shutdowns.

Senseless shootings in public places.

Carjackings… etc etc.

Puerto Vallarta got the worst of it.

Not some remote town in the hills of Jalisco…

Puerto Vallarta.

Puerto Vallarta is a polished expat destination, internationally marketed and filled with foreign nationals who, understandably, feel insulated from deeper systemic dynamics.

Whenever conversations about safety in Mexico come up, I’ve heard various people say, “why don’t they just do what Bukele did in El Salvador?”

On the surface, that question sounds reasonable.

Bukele cracked down aggressively on violent street gangs.

Brutal? Yes.

Ruthless? Absolutely.

A serious threat to public safety? Without question.

…and Bukele took care of the issue… swiftly.

Crime rates dropped dramatically, and order was restored in many areas that had been effectively controlled by violent criminal groups

But a comparison between the gangs of El Salvador and the narco-trafficking groups of Mexico is far from “apples to apples”.

Bukele was confronting street gangs that, while violent, were not embedded in the same way that Mexico’s narco-trafficking organizations are embedded within the broader power structures of the country.

There is a profound difference between dismantling gangs that control blocks in a small country and confronting organizations intertwined with the national economy, trade routes, businesses, political parties, etc., etc.

The power and influence held by the Mexican narco-trafficking groups doesn’t just get “cleaned up” or go away quickly… or even over time.

They’re too big, too strong, too connected… and frankly, I’ve heard it argued that they’re even too important economically. 

So no, they won’t just go away.

They’ll adapt.

They’ll negotiate new “terms”.

They’ll recalibrate.

…and they’ll continue their operations.

Mexico’s cartels are a parallel structure of influence that intersects amongst all elements of the country, and whose position is deeply embedded within the system.

That isn’t going to change. 

If you are living in most places in Mexico in reasonably developed suburbs, this complexity most likely feels very distant most of the time.

You might go years, or even decades, without personally experiencing some form of “woah” event or moment. 

But when you are building a Plan-B and anchoring capital, securing residencies for family members, and establishing long-term plans that will keep you, your loved ones, and your assets safe, it is ill-advised to evaluate a country based on how it feels on a good day.

That is where Mexico becomes difficult.

When you build a Plan-B, you are not choosing a country based on cuisine, culture or the quality of its beaches. 

You are choosing it based on predictability, institutional strength and trajectory. 

“But millions of people live there safely and happily, Mikkel.”

True.

“I’ve never had a problem in Mexico, and I’ve been there 15 times.”

That may be true as well.

But here’s the question you need to ask:

Is the system itself stable, OR are you just comfortable living in your little insulated pocket?  

Again, I love Mexico.

Members of my team live as expats in Mexico (including my most recent hire, Ryan). 

But when clients come to us asking where they should establish a serious Plan-B, where they should secure residency, own property, structure companies, and potentially anchor part of their life, Mexico doesn’t make the cut. 

We take our client responsibility seriously, which requires us to adopt a cold, no-nonsense approach to evaluating Plan-B jurisdictions. 

When we analyze jurisdictions for clients, the top evaluation criteria relate to personal security, system integrity, political stability, and long-term trajectory.

…

There are countries in Latin America that are secure, and where the security is not reliant on state and non-state actors getting along.

Those are the environments where we focus on helping our clients set up Plan-Bs.

Mexico may continue to be an extraordinary place to visit, to enjoy, and some of you reading this will still opt to live there, but when clients ask us where to anchor serious capital, where to secure residency, and where to build the structural foundation of a second life, Mexico is not on the list. 

If you want to understand where we are actively positioning clients and why those jurisdictions differ fundamentally in terms of trajectory and institutional strength, read this important letter carefully before scheduling a call with my Head of Client Intake, Melissa, to better understand your options.

Once you’ve read the entire letter, you can click here to fill out an application form to schedule a call to discuss it with us. 

Speak soon,

Mikkel

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